LatAmOil: Chevron enters Guyana

Chevron, which is already active in Venezuela and Suriname, will enter Guyana via the acquisition of the US independent Hess. In a statement on October 23, the US major noted that Hess was bringing both Guyanese and US assets to the table.

“The acquisition of Hess upgrades and diversifies Chevron’s already advantaged portfolio,” the statement said. “The Stabroek block in Guyana is an extraordinary asset with industry-leading cash margins and low carbon intensity that is expected to deliver production growth into the next decade.”

Hess has a 30% stake in Stabroek, which is located offshore Guyana.

The block is known to contain at least 11bn barrels of oil equivalent (boe) in recoverable reserves, with “high cash margins per barrel, strong production growth outlook and potential exploration upside,” as Chevron’s statement noted. It is currently yielding more than 360,000 barrels per day (bpd) from two floating production, storage and off-loading (FPSO) vessels and will see a third FPSO come on stream before the end of 2023.